Stock Research Report: Avanti Feeds Ltd.
Q3 FY2025 Financial Analysis & Future Projections
Published: March 12, 2025
1. Latest Results Highlights
Revenue Growth
9% YoY
Reaching ₹ 1,408 crore
Net Profit
69% YoY
₹ 1,408 million
EBITDA Margin
14.6%
Expanded 417 bps YoY
Earnings Per Share
₹ 10
Increased 87% YoY
- Shrimp Feed Sales: Increased by 14% YoY, adding 15,731 MT.
- Processed Shrimp Exports: Declined by 3.7%, impacted by higher shipments in transit.
2. Growth Metrics & Expense Analysis
- Shrimp Feed EBITDA Margin: Improved 753 bps YoY, reaching 16.5%.
- Processed Shrimp EBITDA Margin: Declined 600 bps YoY to 8.3%, affected by higher raw material costs and ocean freight rates.
- Shrimp Feed Consumption in FY24: Estimated at 10.5 – 11 lakh MT.
- Exports Contribution: 20% of sales, with 70% directed to the USA.
3. CAPEX & Growth Strategy
- Pet Food Expansion: Entered the Indian pet food market with Avant Furst brand.
- Planned Pet Food Plant: Set to launch in December 2026, targeting 3 lakh MT market.
- Fish Feed Business: Conducting trials before finalizing investment.
- Processing Expansion: Increasing shrimp processing capacity to 30,000 MT raw material throughput in the next 4-5 quarters.
- Diversification: Exploring new export markets (Japan, Korea, EU, Middle East) to reduce dependence on the US market.
4. Long-Term Projections & Returns
| Year | Revenue (₹ Cr) | EBITDA Margin (%) | EPS (₹) | CAGR (%) |
|---|---|---|---|---|
| 2025 | 5,511 | 13.5 | 9.9 | – |
| 2030 | 8,500 | 15.0 | 16.5 | 10.5 |
| 2035 | 12,750 | 16.2 | 24.8 | 9.8 |
| 2040 | 18,200 | 17.0 | 36.5 | 9.2 |
Revenue Projection (₹ Cr)
2025
2030
2035
2040
5,511
8,500
12,750
18,200
5. Bull & Bear Case Analysis
Bull Case
- Strong demand for value-added shrimp products and expansion into new global markets.
- Pet food business scaling up, contributing significantly by 2027.
- Stable or lower raw material costs improving EBITDA margins.
- Government support through PM Matsya Sampada Yojana boosts aquaculture industry.
Bear Case
- Higher raw material costs (e.g., fish meal, soybean meal) could compress margins.
- US CVD tariff of 5.77% impacts shrimp exports.
- Weather & Disease Risks affecting aquaculture production.
- Increased competition from Ecuador and Vietnam in global shrimp exports.
6. Valuation & Investment Thesis
Current Market Cap
₹ 11,238 Cr
Stock P/E
23.4x
In line with industry average
Price to Book Value
4.46x
(₹ 824/share)
ROE / ROCE
15.1% / 20.0%
| Time Horizon | Projected Fair Value |
|---|---|
| FY2026 | ₹ 950 – 1,000 per share |
| FY2030 | ₹ 1,500 – 1,800 per share |
Strong financials, robust growth plans, but risks from tariffs and raw material volatility.
Disclaimer: This report is for informational purposes only and does not constitute financial advice. Investors should conduct their own due diligence before making investment decisions.
Leave a Reply
You must be logged in to post a comment.